What Is a Hardship Discharge in a Texas Chapter 13 Case?

 Posted on February 21, 2026 in Chapter 13 Bankruptcy

A hardship discharge lets you end your Chapter 13 bankruptcy case early and still wipe out some of your debt, even if you haven't finished making all your plan payments. Life doesn't always go as planned, and the bankruptcy code has a built-in option for people who fall behind through no fault of their own.

If you're struggling to keep up with your plan payments and aren't sure what your options are in 2026, our Brazoria, TX bankruptcy lawyer is here to help you understand what comes next.

What Is the Difference Between a Regular Chapter 13 Discharge and a Hardship Discharge?

A regular Chapter 13 discharge happens after you complete all your plan payments, usually over three to five years. Once you finish, the court discharges most of your remaining unsecured debt, like credit cards and medical bills.

A hardship discharge under 11 U.S.C. § 1328(b) is different. It allows the court to discharge some of your debt before you've finished the plan, when something serious has happened that makes it impossible for you to keep going. It's not an easy path, but it exists because sometimes life changes in ways that no one could have planned for.

What Do You Have To Prove To Get a Hardship Discharge in Texas?

To qualify for a hardship discharge, you have to meet three specific requirements:

• Your failure to complete plan payments must be due to circumstances beyond your control and through no fault of your own.
• Your creditors must have already received at least as much as they would have gotten if you had filed Chapter 7 instead.
• Modifying your plan to make it more affordable must not be a realistic option.

The first requirement is the one most people focus on. Job loss alone may not be enough. Courts typically look for something serious and lasting that has made it genuinely impossible to continue making payments even at a reduced level.

What Kind of Hardship Qualifies Under the Bankruptcy Code?

The most common situations that qualify involve a serious medical condition or injury that prevents you from working. If you've been diagnosed with a long-term illness, suffered a disability, or lost a spouse who contributed to household income, those are the types of circumstances courts look at most closely.

Temporary setbacks, like a short layoff, a brief illness, or a temporary reduction in hours, are usually not enough on their own. The hardship needs to be something substantial and long-lasting that truly prevents you from completing the plan, even with modifications.

What Debts Can and Cannot Be Discharged in a Chapter 13 Hardship Discharge?

This is an important distinction. A hardship discharge is more limited than a regular Chapter 13 discharge. Under 11 U.S.C. § 523(a), any debt that would not be dischargeable in a Chapter 7 case also cannot be discharged through a hardship discharge.

That means the following debts survive:

• Child support and alimony
• Most student loans
• Recent income tax debts
• Debts from fraud or intentional wrongdoing
• Restitution ordered as part of a criminal sentence

Unsecured debts like credit cards, medical bills, and personal loans that were included in your plan may still be discharged, as long as the other requirements are met.

How Do You Apply for a Hardship Discharge in Texas?

You have to file a motion with the bankruptcy court asking for the hardship discharge. The motion needs to lay out what happened, why you can't complete the plan, and why modification isn't possible. The court will hold a hearing and consider whether you've met all three requirements.

It helps to have documentation ready, including medical records, proof of income changes, letters from doctors or employers, and anything else that supports your story. The more clearly you can show the court what happened and why it prevents you from completing your plan, the stronger your case will be.

Schedule a Free Consultation With Our Houston, TX Bankruptcy Attorney

If you've hit a wall in your Chapter 13 case and don't know what to do next, The Fealy Law Firm, PC can offer guidance. We are here to help good people get through hard times and take back control of their finances. Attorney Vicky Fealy is Board-Certified in Consumer Bankruptcy Law by the Texas Board of Legal Specialization and has helped thousands of people and businesses find real debt relief.

Call 713-526-5220 to schedule a free consultation with our Brazoria, TX bankruptcy lawyer and find out what options are available to you.